China's Wanxiang Eyes Japan Auto Parts Companies For Takeover

March 17, 2004

SHANGHAI March 17, 2004; Jane Lanhee Lee writing for Dow Jones reported that one of China's biggest auto parts makers, Wanxiang Group, which has been expanding aggressively through acquisitions, is eyeing Japan for its next overseas foray.

Wanxiang Group spokesman Mo Xiaoping said Wednesday the group would establish a wholly owned unit before the end of the year to acquire Japanese auto parts makers.

"We haven't decided which auto parts business to focus on in Japan yet," said Mo, adding the company is still formulating a plan.

It wouldn't be the first time Wanxiang has shopped overseas. In 2001, Wanxiang became the largest shareholder in U.S. brake parts maker Universal Automotive Industries Inc., after acquiring a stake of about 20% in the Nasdaq- listed firm.

Wanxiang now has stakes in more than 10 U.S. companies, Mo said, adding that globally it has holdings in more than 20 companies, mostly in the auto parts business.

In China, Wanxiang, which was established in 1969, controls auto parts maker Wanxiang Qianchao Co. , and also has major holdings in beverage maker Hebei Chengde Lolo Co. and food-processing firm Heilongjiang Huaguan Science and Technology Co. .

In 2003, Wanxiang had sales of CNY15.2 billion ($1=CNY 8.277) and employed 31, 000 people.

Forbes Global magazine ranked the group's chairman, Lu Guanqiu, China's fourth richest person last year.